Payment service providers operate in one of the most rapidly evolving regulatory environments in UK financial services. Yet the compliance risk registers many PSR-authorised firms rely on were built for a different business model, a different regulatory framework, or — in some cases — barely built at all.

A compliance risk register is not optional for payment institutions, e-money institutions, or registered account information service providers. It is the foundation of your firm's risk management framework — the document that should tell your board, your senior managers, and your regulator exactly what risks your firm faces, how they are controlled, and whether those controls are working. Without heat mapping that genuinely reflects your risk profile, your firm is managing risk it cannot see.

In this episode, we examine what a genuinely effective PSR-specific Compliance Risk Register looks like, why payment firms face a distinct set of regulatory risks that generic frameworks consistently fail to capture, and how heat mapping should function as a real decision-making tool rather than a colour-coded formality.

We cover:

— The PSR regulatory landscape: FCA authorisation requirements, Payment Services Regulations 2017 obligations, and what the regulator expects a payment firm's risk framework to demonstrate

— Payment-specific risks your register must capture: safeguarding failures, agent oversight, APP scam liability, strong customer authentication, operational continuity, and financial crime exposure

— Likelihood and impact scoring: applying consistent, defensible criteria that reflect regulatory reality rather than organisational optimism

— Heat mapping in practice: building a compliance heat map that gives your board genuine visibility of your PSR risk landscape

— Inherent versus residual risk: how to assess control effectiveness honestly and what examiners think when residual scores look implausibly low

— Safeguarding as a risk category: reflecting safeguarding obligations accurately within your register given the FCA's intensifying supervisory focus on payment firm failures

— Dynamic risk management: review frequency, out-of-cycle update triggers, and evidencing that your register is a living governance document rather than an annual exercise

— AML and financial crime risk: embedding MLRs 2017 obligations within your PSR risk framework and ensuring your register reflects your firm's specific exposure

This episode is essential listening if your firm:

— Is a payment institution, e-money institution, or AISP that has not reviewed its risk register against current FCA and PSR supervisory priorities

— Has a risk register adapted from a generic template that does not reflect payment-specific regulatory obligations

— Is preparing for an FCA supervisory visit or s166 review, or is subject to the FCA's heightened scrutiny of the payments sector

— Has experienced safeguarding, fraud, or operational failures not adequately reflected in its current risk profile

Resources mentioned in this episode:

Compliance Consultant's PSR Compliance Risk Register with heat mapping is a ready-to-use toolkit built specifically for payment institutions and e-money institutions. It provides a PSR-specific risk identification framework, consistent scoring methodology, fully formatted heat mapping tools, and governance templates enabling compliance teams to build and maintain a risk register that reflects genuine regulatory best practice for the payments sector.

Built by qualified regulatory consultants who know exactly what "good" looks like.

Visit complianceconsultant.org to find out more, or call us on 0800 689 0190.

Compliance Consultant — Making Compliance Work.